(Source : Politico) In a dramatic escalation of tensions between the Trump administration and federal employee unions, a coalition of labor groups has filed a lawsuit to block Elon Musk’s Department of Government Efficiency (DOGE) from accessing a sensitive Treasury system that handles trillions of dollars in federal payments. The lawsuit, filed Monday in federal court in Washington, D.C., accuses the Trump administration of illegally granting Musk’s team access to confidential taxpayer and employee data, calling the move an “unprecedented” breach of privacy.
The lawsuit, brought by the Alliance for Retired Americans, the American Federation of Government Employees, and the Service Employees International Union, claims that Musk’s DOGE team has been given “full, continuous, and ongoing access” to the Treasury’s payment system, which disburses Social Security benefits, Medicare payments, tax refunds, and federal salaries. The system processed over $5 trillion in fiscal year 2023 and is protected by strict federal privacy laws, including the Privacy Act and the Internal Revenue Code.
According to the New York Times, “The scale of the intrusion into individuals’ privacy is massive and unprecedented,” written in a suit, filed at the Federal District Court in Washington. “Millions of people cannot avoid engaging in financial transactions with the federal government and, therefore, cannot avoid having their sensitive personal and financial information maintained in government records.”
It continues, “Secretary Bessent’s action granting DOGE-affiliated individuals full, continuous and ongoing access to that information for an unspecified period of time means that retirees, taxpayers, federal employees, companies, and other individuals from all walks of life have no assurance that their information will receive the protection that federal law affords.”
A “Shadow Government” in Action?
The lawsuit alleges that Treasury Secretary Scott Bessent exceeded his statutory authority by allowing Musk’s team to access the system, arguing that the move was “arbitrary, capricious, and unlawful.” The complaint warns that millions of Americans—including retirees, federal employees, and businesses—now have “no assurance” that their sensitive personal and financial information is secure.
The legal challenge comes amid growing backlash against Musk’s sweeping efforts to cut federal spending and overhaul government operations. Senate Minority Leader Chuck Schumer (D-N.Y.) has called DOGE an “unelected shadow government” leading a “hostile takeover” of federal agencies, while House Democratic Leader Hakeem Jeffries (D-N.Y.) is working on legislation to strengthen safeguards for confidential data.
President Donald Trump, however, has thrown his full support behind Musk’s efforts, describing the billionaire as a key ally in his mission to “shrink government.” In remarks from the Oval Office on Monday, Trump insisted that Musk “can’t do, and won’t do, anything without our approval,” adding that access would only be granted where “appropriate.”
But critics argue that Musk’s unprecedented influence over federal operations represents a dangerous erosion of checks and balances. Karla Gilbride, former General Counsel of the Equal Employment Opportunity Commission and now working with Public Citizen on the lawsuit, warned that the president “is not a king” and that Musk’s actions threaten the constitutional separation of powers.
The lawsuit is just the latest flashpoint in Musk’s controversial campaign to streamline federal agencies. Earlier this month, the Trump administration pushed out a top Treasury official who had refused to grant DOGE access to the payment system, a move described by former Treasury officials as highly unusual.
Meanwhile, Musk’s allies within the Treasury have reportedly undergone government background checks and obtained security clearances, according to sources familiar with the matter. But critics argue that these measures are insufficient to protect the privacy of millions of Americans whose data is now potentially exposed.
A Call to Action
The lawsuit has galvanized labor unions and advocacy groups, who see it as a critical fight to protect both privacy and the integrity of federal operations. A protest organized by the group “Move On” is scheduled for today, with organizers emphasizing a commitment to nonviolent action and de-escalation.
As the legal battle unfolds, the stakes could not be higher. With Musk’s DOGE team wielding unprecedented power over federal agencies, the lawsuit represents a pivotal moment in the ongoing struggle over government transparency, privacy, and the limits of executive authority.
The question remains: Will the courts rein in Musk’s influence, or will the “shadow government” continue its march unchecked?
